Trump’s Big Corporate Tax Cut Keeps Getting Harder and Harder

Ron Sachs/CNP via ZUMA

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.

Let’s see. Republicans first proposed a complicated border tax scheme as a way of paying for their huge tax cut to the well-heeled. That didn’t fly. Trump then preemptively declared both the mortgage interest deduction and the charitable deduction off limits. Republicans regrouped and laid out a proposal to eliminate the deduction for state and local taxes. That died when a bunch of red-state senators realized it would affect them, not just Democrats in blue states. Child tax credits are also off the table since Trump wants to increase those. Ditto for capital gains rates, which no Republican wants to increase. Finally, in desperation, Republicans recently tossed out the idea of limiting 401(k) contributions, but now Trump has killed that idea too.

So mortgage interest, charitable deductions, retirement income, state and local taxes, and education accounts are all now off limits. That’s basically everything. There is no longer any way, even theoretically, to pay for the Republican tax cut.

And yet wealthy business owners want their tax cut. That’s the only reason they supported an obvious simpleton like Trump in the first place. So Republicans need to deliver.

But how? I predict smoke and mirrors.

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily bluster—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily bluster—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate